Fewer Reps: Part II
When I agreed to write a blog exclusively for JCKonline I was told I could keep writing as I had been on my own blog and write about whatever I wanted.
I have tried to be careful to not offend and to be relevant. Still, I hoped to lend another perspective to things, realizing that most of my experience has been with vendors doing business with independent jewelers. Most of what was being written and presented came from people with very different experiences than my own.
Who talks about the difficult things in our industry? Who has the fortitude and perspective to ‘tell it like it is’? Who is willing to talk about an elephant in the room? (The elephants come in a variety these days, as there are several at any one time)
There are very few willing to talk about the elephants. Most (including myself at times) are content to offer little observations, turn clever phrases, or send up suggestions on how one might do things a bit differently to manage through difficult times.
My most recent blog was about there being fewer reps on the road. Let me say it another way: Reps are regularly getting screwed by the companies they represent. The vendor/rep relationship is typically a one-way street with the rep signing an agreement to abide by, yet the vendor ultimately can do whatever it wants in a relationship with a rep.
As a retailer, tell me how many reps who call on your store have been with the same company for longer than 5 years? My guess is not that many and it is becoming fewer and fewer. Why do you think that is?
Granted, there are some reps who are not good at what they do. I’m not talking about those. I’m talking about the ones who get up every day to go out and do what they are supposed to do: call on accounts, write orders, handle customer service issues, train, and prospect new business—usually paying their own expenses.
It is easy to say a rep has jumped from this vendor to that one and you don’t know who they are going to be representing the next time they come through the door. Have you ever asked a rep why they have changed? It is a tough spot to be in, knowing the vendor you are representing is not delivering on its promises or is treating you poorly, unfairly, or having a hard time paying you and you still have to go out and sell for them so you can earn a living and keep food on the table for your family.
It is a tough situation getting tougher. Most reps are struggling to make a living just like many others these days. Vendors are notorious for asking a prospective rep to provide the list of retailers they do business with and then fully expect that rep to deliver those jewelers to them as new accounts.
It is not that easy or simple. How many times can a jeweler take on a new line just because a rep changes? That has actually caused many jewelers to become overstocked in the wrong things for the wrong reasons. (see my next blog on Monday)
Yes, reps are struggling right now.
- They are losing money by spending to travel with the HOPE they will get an order somewhere.
- They are losing money because jewelers aren’t adding stock.
- They are losing money because the vendors they represent are feeling it too.
- They are losing money because vendors are reducing commissions.
- Vendors are cutting territories, firing reps, not paying them, going back on their commitments.
What recourse does a rep have with a vendor? Very little, if any. The rep is at the mercy and whim of the vendor.
Like other things in our industry, that is about to change. Good reps will be finding good vendors who do what they say they will do. Good reps will have vendors sign a contract for the terms of doing business with them just as the vendor has the rep sign theirs.
Good reps will have a forum and representation when things turn sour. They will have recourse. They will no longer be just at the mercy and whim of the vendor they represent. They will have rights exercised in a legal and thoughtful way, but not a vengeful way. And it will happen because it needs to. Things cannot continue to go the way they have.
The conditions of work are hazardous for a rep with all the dangers of robbery and bodily harm. As difficult as the job has become, for many reaping the rewards has become too difficult to justify doing it anymore. It is a shame, because the industry is losing good people.
And while the economy is easy to blame, I think it is revealing much for our industry to see, consider, and change.
Ed from TEDS commented:
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